Juniper forecasts rapid rise in uptake of contactless payments
A new study from Juniper Research has found more than half (53 percent) of global transactions at the point of sale will be contactless within five years, compared with 15 percent this year.
POS & mPOS Terminals: Vendor Strategies, Positioning & Market Forecasts 2017-2022, predicts that contactless adoption in the U.S. will rise sharply over the period, as well — from less than 2 percent of transactions this year to 34 percent by 2022.
The report asserts that customer dissatisfaction with the slower speeds of chip card transactions combined with expanding contactless infrastructure will provide further impetus for smartphone-based payments currently dominated by Apple Pay.
According to the research, in markets where contactless has been heavily promoted, such as Poland and the U.K., adoption has soared. Additionally, mandates from Visa and MasterCard mean that all POS terminals in many markets must be contactless-enabled by 2020.
"While U.S. card issuers haven't yet made contactless a priority, the extremely positive response across Europe, both from merchants and consumers, suggests the U.S. would see very rapid migration at POS if and when contactless cards become mainstream," research author Dr. Windsor Holden said in the release.
Companies: Juniper Research